Carrollton Ave Multifamily Property
Project Overview
Investment underwriting analysis for a converted fourplex located in the Broad Ripple area of Indianapolis. The project evaluates acquisition feasibility based on rental income potential, operating expenses, financing assumptions, and risk factors such as permitting status, insurance costs, and owner-paid utilities. The analysis indicates strong potential returns if legal unit recognition, insurance pricing, and renovation completion are verified.
Property Snapshot
Total Size
List Price
Year Built
Address
Unit Mix
Property Type
Key Assumptions
The following assumptions reflect the base underwriting scenario and highlight the key variables that could materially improve or weaken the investment outcome.
Financial Performance
The property is underwritten at $6,750/month in gross rent, based on the current unit mix. After accounting for vacancy, management, maintenance reserves, utilities, insurance, and taxes, the projected Net Operating Income (NOI) is approximately $39,799 annually. At the $424,000 purchase price, this results in a ~9.39% cap rate and supports positive cash flow under the modeled financing scenario.
Key Risks
The primary risk is the legal status of the 4-unit conversion, which reportedly may have been completed without permits. Additional risks include owner-paid utilities due to non-separated metering, potential insurance cost variability for a converted multifamily property, and the need to verify that the renovation is truly 90–95% complete.
Required Next Steps
Before proceeding with acquisition, several items must be verified. These include confirming legal unit recognition and zoning compliance, obtaining a bindable insurance quote, reviewing 12 months of utility costs, and validating the remaining renovation scope through a contractor inspection.
Key Investment Metrics
Gross Scheduled Rent
DSCR
DSCR
Cap Rate
Cash-on-Cash Return (Yr 1)
Risks & Open Questions
Several risks were identified during underwriting.
Legal Unit Recognition
The property is reportedly converted into a four-unit building without confirmed permits. Verification is required to confirm whether the city legally recognizes the property as a 4-unit multifamily asset and what steps may be required to legalize the conversion if needed.
Utilities & Operating Costs
The units are not separately metered, meaning utilities are likely owner-paid. Actual utility expenses must be verified through 12-month billing records to confirm whether the assumed $600–$900 monthly utility range is accurate.
Renovation Completion
The renovation is reported to be 90–95% complete, but the remaining scope of work must be verified. A contractor inspection is needed to confirm finish-out costs and ensure compliance with building codes, including basement egress requirements.
Decision Framework
The property fits a long-term buy-and-hold strategy in a strong rental area. Projected rent and cap rate support stable performance once stabilized.
Underwriting assumes $6,750 monthly rent with conservative expenses. The deal produces a ~9.39% cap rate and DSCR of 1.57.
Execution depends on confirming legal unit status, insurance costs, utilities, and remaining scope. Once verified, the path to stabilization becomes clear.
Decision Outcome
Conditional Proceed
Based on the underwriting analysis, the property demonstrates strong potential financial performance, with an estimated ~9.39% cap rate and DSCR of 1.57 under stabilized assumptions. However, the investment decision remains conditional on verifying several critical factors, including the legal recognition of the 4-unit conversion, insurance pricing, and actual operating expenses. Once these items are confirmed, the property may present a compelling long-term multifamily investment opportunity.
